Synopsis
In a recent live stream with Delta Exchange, trading expert Saketh Ramakrishna discussed the effectiveness of ratio spreads in volatile markets. He highlighted the importance of timing, market sentiment, and key support and resistance levels. The session included a live trade example demonstrating how to balance bullish and bearish positions using ratio spreads.
In the latest live stream, hosted in collaboration with Delta Exchange, trading expert Saketh Ramakrishna explored the effectiveness of ratio spreads, especially in volatile market environments. This session focused on how traders can harness these strategies to navigate uncertainties in their trading approaches.
Watch Live Stream Full Video Here
Understanding Ratio Spreads
Saketh explained that ratio spreads involve buying one option while simultaneously selling multiple options at different strike prices. This strategy allows traders to create profit opportunities while managing risk.
Crypto Tracker
TOP COIN SETSAI Tracker32.04% BuyNFT & Metaverse Tracker24.67% BuySmart Contract Tracker13.41% BuyWeb3 Tracker13.29% BuyBTC 50 :: ETH 5012.30% BuyTOP COINS (₹) Ethereum221,934 (2.78%)BuyBNB49,662 (1.9%)BuyBitcoin5,325,566 (1.24%)BuyTether84 (0.02%)BuySolana12,258 (-0.44%)Buy
He emphasized that ensuring the premium collected from these strategies exceeds any upfront costs is crucial. Using ratios such as 1:3 or 1:4 can optimize potential returns.
Did you Know?
The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.
View Details »
Stock Trading
Market 101: An Insight into Trendlines and Momentum
View Program
Stock Trading
Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading
View Program
Stock Trading
Market 103: Mastering Trends with RMI and Techno-Funda Insights
View Program
Stock Trading
Market 104: Options Trading: Kickstart Your F&O Adventure
View Program
Stock Trading
ROC Made Easy: Master Course for ROC Stock Indicator
View Program
Stock Trading
RSI Made Easy: RSI Trading Course
View Program
Stock Trading
Technical Analysis for Everyone – Technical Analysis Course
View Program
Stock Trading
Introduction to Technical Analysis & Candlestick Theory
View Program
Stock Trading
Options Trading Course For Beginners
View Program
Stock Trading
Options Scalping Made Easy
View Program
Stock Trading
Futures Trading Made Easy: Future & Options Trading Course
View Program
Stock Trading
Stock Markets Made Easy
View Program
Stock Trading
Renko Chart Patterns Made Easy
View Program
Stock Trading
Options Trading Made Easy: Options Trading Course
View Program
Stock Trading
Stock Investing Made Easy: Beginner’s Stock Market Investment Course
View Program
Stock Trading
Macroeconomics Made Easy: Online Certification Course
View Program
Stock Trading
Stock Valuation Made Easy
View Program
“This approach enables traders to maximize returns if markets behave as expected and reduces losses when they do not,” he stated.
The Importance of Timing
With significant market events influencing trading decisions, Saketh emphasized the need for caution. He advised traders to carefully evaluate their entries, as volatile conditions can lead to rapid price movements. Maintaining a conservative approach to position size during uncertain times is critical for managing risk effectively.
Market Sentiment and Reactions
Saketh noted that markets often react sharply to announcements from the Federal Reserve. While a rate cut could initially stimulate the market, he cautioned that traders should be prepared for subsequent corrections. “The market may rally on the news, but we often see profit booking shortly after. It’s essential to stay alert and adjust your strategy accordingly,” he advised.
Navigating Market Conditions
Saketh highlighted Bitcoin’s recent consolidation, noting key support and resistance levels. Understanding these dynamics is crucial when implementing ratio spreads. He advised that traders use these levels as reference points for entering trades, reminding them that bullish traders should focus on put ratios and bearish traders on call ratios.
He also pointed out that ratio spreads can lead to substantial profits when the trader’s outlook is correct, while also limiting losses if the market moves against them. This risk-reward balance is what makes ratio spreads particularly appealing for traders facing volatile conditions.
Live Trade Example
During the live demonstration, Saketh provided insights into his trading session. He executed a bullish ratio spread on the put side and balanced it with a bearish call-side spread, emphasizing the importance of adjusting positions based on market sentiment. “Being prepared for volatility is crucial, and having a solid hedge can protect your position against sudden market changes,” he noted.
Watch Live Stream Full Video Here
(Note: This article is for educational purposes only)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
